First-time buyers: Get it right first time

By Diana Wildman
Posted: 2010/04/23

FIRST-time buyers, for so long the poor relation during this recession, got a mighty fillip when this Government announced the doubling of the stamp duty threshold to £250,000 for them

The Tories' statement that they would make this a permanent measure for first-time buyers has resulted in a new note of optimism within the moribund housing market.

Reacting to the news, Barratt's chief executive Mark Clare said: "Even though the majority of our first-time buyers do pay £250,000 or less for their homes many more will now be able to afford to buy."

Scottish house builder Carronvale Homes, currently building new homes in Edinburgh and Glasgow priced from £108,995, has also welcomed this incentive to raise the stamp duty threshold. Chief executive Jim Preston said: "First-time buyers are important to the housing market and hopefully will lead to positive signs that recovery in the housing market is underway.

"We have some attractive deals that can only help those looking to get on the ladder.

We will put potential home buyers forward for a mortgage where, subject to status, they can qualify for a 90 per cent mortgage. If the affordability is not there, then a 70/30 shared equity scheme could be available."

This new emphasis on the first-time buyer market was confirmed at an awards ceremony in London yesterday sponsored by First Time Buyer magazine. The Private Developer of the Year award went to Miller Homes and the Affordable Housing Provider of the Year prize went to Metropolitan Home Ownership.

This stamp duty bonus can even help beleaguered London buyers, as Willmott Dixon's Sue Gresswell explained: "Scrapping stamp duty on properties priced up to and including £250,000 potentially represents a saving to an individual of up to £2,500 and we know from purchasers at our Harmony development in Isleworth that this is a significant amount for people struggling to buy their first home. The Council of Mortgage Lenders estimates that around 136,000 homebuyers can benefit each year."

Rob Newton and Sarah Moore have already benefited from the rise. The pair have bought a four-bedroom home at Taylor Wimpey Midlands' Regency Square development in Burton-upon-Trent where prices are from £119,950.

The couple, who were living with their respective parents in Burton and Long Eaton, were keen to live together but didn't want to rent, as Rob, 33, explained. "I was renting before I moved back to my parents' home but I felt I was pouring money down the drain as I had nothing to show for what I'd spent.

"Now in just one move we have gained independence from our parents and a fantastic four-bedroom home. We thought it would take us years to get to this stage."

There is a surprisingly large choice of homes for sale under the new threshold within commuting distance of London, including The Green at Fortuna Park in Colchester in Essex where prices are from £152,000 for a two-bed house. Being built by Countryside Annington, there are landscaped gardens, courtyards, allocated parking and fully-fitted kitchens.

Another is Welland Quarter, a contemporary riverside scheme within walking distance of Market Harborough town centre priced from £99,950.

Paul Vesty, project director of the builders St Mary's Developments, said: "Although the increase in stamp duty threshold will help first-time buyers there is still concern about the lack of mortgage availability and overall affordability so we continue to offer a range of incentives on select apartments to help first-time buyers make that step on to the ladder."

Barratt opens a new showhome tomorrow in the picturesque village of Bocking, near Braintree, Essex.

The Waterside Reach development at Bocking Mill has prices from £197,995 for a two-bedroom house.

There is a wide choice of styles at Bocking Mill and Barratt's Rebecca Littler said: "The style of home people prefer is a very personal decision and by providing such an excellent choice I'm confident that we have something to suit nearly everyone. The River Pant runs through the heart of Bocking Mill and Braintree station with direct services to London is a mere two miles away."

Origin Housing's 79 Kings Cross Road scheme consists of one and two-bedroom apartments where a 25 per cent share costs from £58,750.

Set in the heart of central London, each contemporary home comes with a stylish open-plan kitchen/living/dining area complete with a range of built-in appliances and secure door entry to each apartment, while most have Juliet balconies.

All apartments come with a 10-year guarantee. The apartments are sold through the New Build HomeBuy scheme. This allows eligible candidates to purchase a share of between 25 and 75 per cent of the property with a subsidised rent paid on the share that is not owned. Candidates must be first-time buyers, have a household income of less than £60,000 and savings of approximately £3,500.

Priority is given to key workers. Over time, owners are invited to purchase a higher proportion of the property.

INFORMATION:
Carronvale Homes: 01324 666899/ www.carronvalehomes.co.uk
First Time Buyer magazine: 020 7724 9006/ www.ftbawards.co.uk
Welland Quarter: 01858 431 315/ www.andrewgranger.co.uk
Regency Square: 0845 071 4829/ www.taylorwimpey.co.uk
Bocking Mill: 01376 529539/ www.barrattdevelopments.co.uk
Countryside Annington: 01206 549 760/ www.fortunapark.net
Origin Housing: 020 7209 9252/ www.originhousing.org.uk